Storytelling returns to court, bank wants to keep ability to file claim against ISC
By Karen Sells
ISC filed an objection April 26 to the four claims from First Tennessee totaling $153,277 on the grounds they had been paid in full by individual guarantors. The objection requests the claims be disallowed in their entirety.
While First Tennessee agrees in its response that the claims have since been paid and ISC is not indebted to the bank at this time, the request comes in an effort to protect the bank against future loss.
In a letter dated March 4, 2011, ISC Counsel Mark Dessauer demanded First Tennessee return almost $65,000 in payments that had been made within the 90-day period prior to the ISC’s filing of a bankruptcy petition on Dec. 31, 2010.
According to Dessauer’s letter, those payments to First Tennessee Bank constitute preferential transfers, which sections of the bankruptcy code say ISC is entitled to recover.
“If payment of the above amount is not received on or before March 18, 2011, suit will be filed in the Bankruptcy Court to recover such amount,” Dessauer wrote.
Attorney Walter Winchester responded for First Tennessee with a letter denying any liability to the Bankruptcy Estate of ISC and refusing to remit the funds.
However, should ISC file suit and successfully recover that $65,000, First Tennessee wants to reserve the rights to file a new claim.
An order by the court disallowing the original four claims in their entirety would prevent the bank from filing a future claim.
First Tennessee’s response requests any order by the Bankruptcy Court disallowing the claims reserve the bank’s rights to assert a new claim if any of the $65,000 must be returned to the ISC.
ISC was scheduled to appear in court June 5 to seek approval on a modification to its Amended Disclosure Statement due to a miscalculation in the amount owed to its creditors.
Included in the modification are new claims filed for the four individuals who paid the balance owed to First Tennessee Bank.
A hearing for a decision on First Tennessee’s request has been scheduled for Tuesday, June 19, at 9 a.m. in Greeneville’s federal Bankruptcy Court.